EUR/CHF in a Well Defined Uptrend
By: Mike Kulej
During the last few weeks, the EUR/CHF has been slowly, but steadily moving up. A new all time low was established in early July, at 1.3070, during the height of the Euro sell off. Interestingly enough, that turning point came about once the Swiss National Bank had stopped market intervention campaign designed to weaken the Swiss Franc.
So far, the EUR/CHF has moved as far 1.3815 and formed a well-defined uptrend, as seen on the intermediate term chart. The price has climbed above the 100 SMA, which provided very nice very convincing support on couple of occasions. In addition, this pair remains above the bullish trendline, always a positive sign.
This bullish action is not very smooth; some fairly deep pullbacks are visible on the chart. That behavior makes for a choppy look of the technical indicators, as demonstrated by the MACD and the ADX. However, the price keeps making new higher highs and higher lows, creating buy situations on pullbacks. For as long as the trendline, the 100 SMA and the most recent low hold, this pair is in a bullish mode. If this continues, the EUR-CHF could reach 1.4000 soon, where a more solid resistance is likely.